OFFICES OF SEN. MORAN/REP. MARSHALL

WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) and 1st Dist. Congressman Roger Marshall (R-KS) today applauded the inclusion of a section 199A tax fix in the FY2018 omnibus package. 

“This legislation restores the competitive balance in the agricultural marketplace by leveling the tax burden on independent and cooperative farming businesses,” said Sen. Moran. “In Kansas, where grain continues to pile up on the ground, the success of our economy can be directly impacted by how our farmers sell and trade grain. The change will provide tax benefits to farmers as intended under the Tax Cuts and Jobs Act.”

“Section 199A of the tax reform law inadvertently provided incentives for farmers and ranchers to sell products to specific business structures and not others,” according to Marshall.

“When we started on tax reform, I promised folks back home that I would fight to preserve the original Section 199 that benefited co-ops, which I did. However, when it became clear that the tax reform package tilted the scales too far, I knew we had to do the right thing and get the government out of the business of picking winners and losers through our tax code,” Rep. Marshall said. “I believe this was an honest mistake, and I am glad to have been part of the effort to resolve this error. I am thrilled that this fix was included in the omnibus and I know my producers and businesses at home will see more and more benefits from our historical tax reform bill because of it.”

Text of the FY2018 omnibus can be found here, and the section 199A fix can be found on page 2033.